INTERIM FINANCIAL STATEMENTS FOR THE · PDF fileStatutory deposit with Bank Negara Malaysia...
Transcript of INTERIM FINANCIAL STATEMENTS FOR THE · PDF fileStatutory deposit with Bank Negara Malaysia...
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
Registered Office
Ground Floor, East Block
Wisma Selangor Dredging
142-B Jalan Ampang
50450 Kuala Lumpur
FOR THE FINANCIAL QUARTER ENDEDINTERIM FINANCIAL STATEMENTS
30 SEPTEMBER 2017
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
Unaudited Audited Unaudited Audited
Note 30 September 31 December 30 September 31 December
2017 2016 2017 2016
RM'000 RM'000 RM'000 RM'000
ASSETS
Cash and short-term funds 333,662 120,213 333,662 120,213 Deposits and placements with banks and other
financial institutions 9 397,143 302,977 397,143 302,977 Securities held-for-trading 10 6,051 5,701 6,051 5,701 Securities held-to-maturity 11 1,450,159 1,468,980 1,450,159 1,468,980 Financing and advances 12 6,818,048 6,002,416 6,818,048 6,002,416 Other assets 25,674 27,902 25,624 27,849 Statutory deposit with Bank Negara Malaysia 259,629 263,529 259,629 263,529 Investment in subsidiary - - - -*Investment properties 105,000 105,000 105,000 105,000 Property and equipment 16,475 14,604 16,475 14,604 Intangible assets 27,761 27,775 27,761 27,775 Deferred tax assets 62,087 62,087 62,087 62,087 Total Assets 9,501,689 8,401,184 9,501,639 8,401,131
(2.00) (3)
LIABILITIES AND SHAREHOLDER'S
EQUITY
Liabilities
Deposits from customers 13 7,146,679 6,158,390 7,146,679 6,158,390
Deposits and placements of banks and other
financial institutions 14 1,148,058 1,120,611 1,148,058 1,120,611
Bills and acceptances payable 3,235 1,067 3,235 1,067
Other liabilities 64,025 82,869 64,027 82,869
Subordinated Sukuk 394,022 299,003 394,022 299,003
Total Liabilities 8,756,019 7,661,940 8,756,021 7,661,9401.00
Shareholder's equity
Share capital 1,000,000 1,000,000 1,000,000 1,000,000
Reserves (254,330) (260,756) (254,382) (260,809)
Total Shareholder's Equity 745,670 739,244 745,618 739,191
Total Liabilities and Shareholder's Equity 9,501,689 8,401,184 9,501,639 8,401,131
COMMITMENTS AND CONTINGENCIES 21 3,666,760 3,196,692 3,666,760 3,196,692
CAPITAL ADEQUACY 23
CET 1 / Core capital ratio 9.716% 11.245% 9.715% 11.245%Risk-weighted capital ratio 16.217% 17.363% 16.216% 17.362%
* The amount is significantly below the rounding threshold.
Bank for the year ended 31 December 2016.
INTERIM FINANCIAL STATEMENTS
UNAUDITED STATEMENTS OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2017
Group Bank
The Interim Financial Statements should be read in conjuction with the audited financial statements of the Group and the
1
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
30 September 30 September 30 September 30 September
2017 2016 2017 2016
Group Note RM'000 RM'000 RM'000 RM'000
Revenue 115,451 91,059 338,019 278,806
Income derived from investment of
depositors' funds and others 15 107,843 82,867 314,764 254,258
Income derived from investment of
shareholder's funds 16 7,608 8,192 23,255 24,548
Allowance for impairment on financing 17 (1,622) (2,002) (1,053) (2,667)
Other expenses directly attributable to the
investment of the depositors' funds - 4 - -
Total distributable income 113,829 89,061 336,966 276,139
Income attributable to depositors 18 (66,651) (50,442) (193,498) (153,614)
Total Net Income 47,178 38,619 143,468 122,525
Personnel expenses (30,345) (25,919) (91,125) (71,470)
Other overheads and expenditures (10,822) (10,027) (45,902) (53,283)
Profit before zakat and taxation 6,011 2,673 6,441 (2,228)
Zakat - - - -
Taxation - (14) (15) (14)
Net profit for the financial period, representing total comprehensive income for the financial period 6,011 2,659 6,426 (2,242)
(1) -
INTERIM FINANCIAL STATEMENTS
UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE 3RD QUARTER ENDED 30 SEPTEMBER 2017
3rd Quarter Ended Period Ended
The Interim Financial Statements should be read in conjuction with the audited financial statements of the Group and the
Bank for the year ended 31 December 2016.
2
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
30 September 30 September 30 September 30 September
2017 2016 2017 2016
Bank Note RM'000 RM'000 RM'000 RM'000
Revenue 115,371 91,021 337,818 278,612
Income derived from investment of
depositors' funds and others 15 107,843 82,867 314,764 254,258
Income derived from investment of
shareholder's funds 16 7,528 8,154 23,054 24,354
Allowance for impairment on financing 17 (1,622) (2,002) (1,053) (2,667)
Other expenses directly attributable to the
investment of the depositors' funds - 4 - -
Total distributable income 113,749 89,023 336,765 275,945
Income attributable to depositors 18 (66,651) (50,442) (193,498) (153,614)
Total Net Income 47,098 38,581 143,267 122,331
Personnel expenses (30,322) (25,926) (91,052) (71,435)
Other overheads and expenditures (10,781) (9,990) (45,788) (53,194)
Profit before zakat and taxation 5,995 2,665 6,427 (2,298)
Zakat - - - -
Taxation - - - -
Net profit for the financial period, representing total comprehensive income for the financial period 5,995 2,665 6,427 (2,298)
The Interim Financial Statements should be read in conjuction with the audited financial statements of the Group and the
Bank for the year ended 31 December 2016.
INTERIM FINANCIAL STATEMENTS
UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE 3RD QUARTER ENDED 30 SEPTEMBER 2017
3rd Quarter Ended Period Ended
3
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
Share Statutory Accumulated
capital reserve losses Total
RM'000 RM'000 RM'000 RM'000
Group
At 1 January 2016 1,000,000 9,855 (277,365) 732,490
Total comprehensive income for the financial year - - 6,754 6,754
Transfer to statutory reserve - 3,351 (3,351) - At 31 December 2016 1,000,000 13,206 (273,962) 739,244
Group
At 1 January 2017 1,000,000 13,206 (273,962) 739,244
Total comprehensive profit for the financial period - - 6,426 6,426
Transfer from statutory reserve - (13,206) 13,206 - At 30 September 2017 1,000,000 - (254,330) 745,670
Bank
At 1 January 2016 1,000,000 9,855 (277,365) 732,490
Total comprehensive income for the financial period - - 6,701 6,701
Transfer to statutory reserve - 3,351 (3,351) -
At 31 December 2016 1,000,000 13,206 (274,015) 739,191
Bank
At 1 January 2017 1,000,000 13,206 (274,015) 739,191
Total comprehensive loss for the financial period - - 6,427 6,427
Transfer from statutory reserve - (13,206) 13,206 -
At 30 September 2017 1,000,000 - (254,382) 745,618
INTERIM FINANCIAL STATEMENTS
UNAUDITED STATEMENTS OF CHANGES IN EQUITY
FOR THE 3RD QUARTER ENDED 30 SEPTEMBER 2017
The Interim Financial Statements should be read in conjuction with the audited financial statements of the Group and the Bank for the
year ended 31 December 2016.
4
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
30 September 30 September 30 September 30 September
2017 2016 2017 2016
RM'000 RM'000 RM'000 RM'000
CASH FLOWS FROM OPERATING ACTIVITIES
Profit / (Loss) before zakat and taxation 6,441 (2,228) 6,427 (2,298)
Adjustments for:
Depreciation of property and equipment 3,668 3,824 3,668 3,824
Amortisation of intangible assets 8,596 8,564 8,596 8,564
Net gain on disposal of property,plant & equipment - 41 - 41
Allowance for impairment on financing 5,745 7,141 5,745 7,141
Bad debts on financing - Written off 1,353 1,302 1,353 1,302
Bad debts on financing - Recovered (6,045) (5,777) (6,045) (5,777)
Allowance for doubtful debt - - - -
Unrealised loss on revaluation of
securities held-for-trading / investment properties (614) (31) (614) (31)
Unrealised (gain)/loss from foreign
exchange translations (3,623) 10,759 (3,623) 10,759
Operating cashflow before workings capital changes 15,521 23,596 15,507 23,525
(Increase) / decrease in Operating Assets
Deposits and placements with banks and
other financial institutions (192,808) (3,106) (192,808) (3,106)
Hedging financial instruments (264) 1,017 (264) 1,017
Financing and advances (816,685) (100,842) (816,685) (100,842)
Other assets 2,230 537 2,227 604
Statutory deposit with Bank Negara Malaysia 3,900 (4,440) 3,900 (4,440)
(Decrease) / increase in Operating Liabilities
Deposits from customers 988,289 302,168 988,289 302,168
Deposits and placements of banks and
other financial institutions 122,466 (184,316) 122,466 (184,316)
Hedging financial instruments - - - -
Bills and acceptances payable 2,168 (15,509) 2,168 (15,509)
Other liabilities (11,087) (6,502) (11,070) (6,498)
Net cash (used in)/generated from operating activities 113,730 12,603 113,730 12,603
INTERIM FINANCIAL STATEMENTS
UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
FOR THE 3RD QUARTER ENDED 30 SEPTEMBER 2017
Group Bank
5
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
30 September 30 September 30 September 30 September
2017 2016 2017 2016
RM'000 RM'000 RM'000 RM'000
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment (5,539) (6,647) (5,539) (6,647)
Purchase of intangible asset (8,582) (7,208) (8,582) (7,208)
Proceeds from sale of fixed assets - - - -
Securities held-to-maturity 18,821 15,105 18,821 15,105
Net cash used in investing activities 4,700 1,250 4,700 1,250
CASH FLOWS FROM FINANCING ACTIVITY
Issuance of Subordinated Sukuk 95,019 - 95,019 -
Net cash generated from financing activities 95,019 - 95,019 -
NET DECREASE IN CASH AND
SHORT-TERM FUNDS 213,449 13,853 213,449 13,853
Cash and short-term funds as at 1 January 120,213 127,806 120,213 127,806
CASH AND SHORT-TERM FUNDS 333,662 141,659 333,662 141,659
(1)
for the year ended 31 December 2016.
The Interim Financial Statements should be read in conjuction with the audited financial statements of the Group and the Bank
UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
FOR THE 3RD QUARTER ENDED 30 SEPTEMBER 2017
Bank
INTERIM FINANCIAL STATEMENTS
Group
6
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
1. BASIS OF PREPARATION
2. ACCOUNTING POLICIES
The following MFRSs and IC Interpretations have been issued by the MASB and are not yet effective:
Effective for the financial period beginning on or after 1 January 2018:
MFRS 15: Revenue from Contracts with Customers
Effective for the financial period beginning on or after 1 January 2018:
MFRS 9: Financial Instruments (IFRS 9 Financial Instruments as issued by IASB in July 2014)
Effective date to be announced:
BNM's Revised Policy Document on Capital Funds for Islamic Banks
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134")
AND POLICY DOCUMENT ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS
ISSUED BY BANK NEGARA MALAYSIA
The unaudited condensed interim financial statements have been prepared in accordance with the applicable requirements
of MFRS 134: Interim Financial Reporting in Malaysia issued by Malaysian Accounting Standards Board (MASB), Financial
Reporting for Islamic Banking Institution policy issued by Bank Negara Malaysia (BNM) and Shariah requirements.
The unaudited condensed interim financial statements should be read in conjunction with the audited financial statements
for the year ended 31 December 2016. The explanatory notes attached to the consolidated condensed interim financial
statements provide an explanation of events and transactions that are significant to an understanding of the changes in the
financial position and performance of the Group and of the Bank since the year ended 31 December 2016.
The significant accounting policies and methods of computation applied in the unaudited condensed interim financial
statements are consistent with those adopted in the most recent audited financial statements for the year ended 31
December 2016:
Amendments to MFRS 10 and MFRS 128 Sale or Contribution of Assets between an Investor and its Associate or Joint
Venture
On 3 May 2017, BNM issued the revised policy document on Capital Funds for Islamic Banks whereby the previous
requirement to maintain a reserve fund is no longer required given the implementation of the Capital Conservation Buffer
under the Capital Adequacy Framework. Therefore, statutory reserves which were previously maintained by the Bank and
its domestic banking subsidiary companies are no longer required. During the period, the Group and the Bank had
transferred RM13,206,000 from statutory reserves to retained profits.
7
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134")
ISSUED BY BANK NEGARA MALAYSIA (CONTINUED)
3. AUDITORS’ REPORT ON PRECEDING ANNUAL FINANCIAL STATEMENTS
4. COMMENTS ABOUT SEASONAL OR CYCLICAL FACTORS
5. UNUSUAL ITEMS DUE TO THEIR NATURE, SIZE OR INCIDENCE
6. CHANGES IN ESTIMATE
7. DEBT AND EQUITY SECURITIES
8. DIVIDENDS PAID
There were no dividends paid during the 3rd Quarter ended 30 September 2017.
There were no issuances, cancellation, repurchases, resale or repayments of debt and equity securities in the 3rd Quarter
ended 30 September 2017.
The auditors’ report on the audited annual financial statements for the financial year ended 31 December 2016 was not
qualified.
The operations of the Group and the Bank were not materially affected by any seasonal or cyclical factors in the 3rd
Quarter ended 30 September 2017.
There were no unusual items affecting the assets, liabilities, equity, net income or cash flows of the Group and the Bank in
the 3rd Quarter ended 30 September 2017.
There were no changes in estimates of amounts reported in prior financial years that have a material effect in the 3rd
Quarter ended 30 September 2017.
AND POLICY DOCUMENT ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS
8
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY DOCUMENT
ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
9. DEPOSITS AND PLACEMENTS WITH BANKS AND OTHER FINANCIAL INSTITUTIONS
Unaudited Audited
30 September 31 December
2017 2016
RM'000 RM'000
Foreign financial institutions 397,143 302,977
10. SECURITIES HELD-FOR-TRADING
Unaudited Audited
30 September 31 December
2017 2016
RM'000 RM'000
At fair value
Quoted securities:
Unit Trust 6,051 5,701
- -
11. SECURITIES HELD-TO-MATURITY
Unaudited Audited
30 September 31 December
2017 2016
RM'000 RM'000
At amortised cost
Unquoted :
Islamic government securities in Malaysia 1,404,063 1,418,182
Islamic private debt securities in Malaysia 46,096 50,798
1,450,159 1,468,980
- -
Group and Bank
Group and Bank
Group and Bank
9
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY DOCUMENT
ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
12. FINANCING AND ADVANCES
(a) Financing and advances analysed by types and Shariah contracts are as follows:
Unaudited
30 September
2017
Group and Bank Bai’ Total net
Bithaman financing and
Ajil Qard advances
RM'000 RM'000 RM'000
At amortised cost
Term Financing:
Corporate financing 5,061,038 - 5,061,038
Personal financing 596,003 - 596,003
Home financing 1,081,931 - 1,081,931
SME financing 37,637 - 37,637
Vehicle financing 80,904 - 80,904
Shop-house financing 33,261 - 33,261
Charge cards - 1,481 1,481
Gross financing and advances 6,890,774 1,481 6,892,255
Less: Impairment allowance
- Collective assessment (73,114)
- Individual assessment (1,093)
Total net financing and advances 6,818,048
-
Audited
31 December
2016
Bai’ Total netBithaman financing and
Ajil Qard advancesRM'000 RM'000 RM'000
At amortised cost
Term Financing:
Corporate financing 4,167,933 - 4,167,933
Personal financing 621,298 - 621,298
Home financing 1,141,875 - 1,141,875
SME financing 42,914 - 42,914
Vehicle financing 79,320 - 79,320
Shop-house financing 36,456 - 36,456
Charge cards - 1,706 1,706
Gross financing and advances 6,089,796 1,706 6,091,502
Less: Impairment allowance
- Collective assessment (81,797)
- Individual assessment (7,289) Total net financing and advances 6,002,416
-
10
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY DOCUMENT
ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
12. FINANCING AND ADVANCES (Continued)
(b) Financing and advances analysed by type of customers are as follows:
Unaudited Audited
30 September 31 December
2017 2016
RM'000 RM'000
Domestic non-bank financial institutions 152,996 256,876 Domestic business enterprise 3,420,098 2,432,984 Individuals 1,771,129 1,859,987 Foreign entities 1,548,032 1,541,655
6,892,255 6,091,502 - -
(c) Financing and advances analysed by profit rate sensitivity are as follows:
Unaudited Audited
30 September 31 December
2017 2016
RM'000 RM'000
Fixed rate:
Corporate financing 3,536,617 2,658,694
Personal financing 596,003 621,298
SME financing 37,653 42,914
Home financing 9,087 10,574
Vehicle financing 80,904 79,320
Charge card 1,481 1,706
Shop-house financing 780 866
Variable rate:
Home financing 1,072,844 1,131,301
Shop-house financing 32,481 35,590
Corporate financing 1,524,405 1,509,239
6,892,255 6,091,502
- - (d) Financing and advances analysed by maturity structure are as follows:
Unaudited Audited
30 September 31 December
2017 2016
RM'000 RM'000
Due within three months 2,922,221 977,595
More than three months to one year 803,084 567,742
More than one year to five years 657,873 2,302,831
More than five years 2,509,077 2,243,334
6,892,255 6,091,502 - -
(e) Financing and advances analysed by geographical distribution are as follows:
Unaudited Audited
30 September 31 December
2017 2016
RM'000 RM'000
Malaysia 5,321,510 4,533,386
Saudi Arabia 1,524,405 1,509,239
Other Countries 46,340 48,877
6,892,255 6,091,502
- -
Group and Bank
Group and Bank
Group and Bank
Group and Bank
11
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY DOCUMENT
ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
12. FINANCING AND ADVANCES (Continued)
(f) Financing and advances analysed by economic purpose are as follows:
Unaudited Audited
30 September 31 December
2017 2016
RM'000 RM'000
Working capital 3,041,074 2,299,470
Purchase of securities 1,524,405 1,509,239
Purchase of property - residential property 1,153,021 1,220,023
Personal use 596,220 621,753
Purchase of commercial complex 176,318 160,286
Purchase of industrial buildings and factories 148,943 39,819
Purchase of vehicles 80,746 79,173
Others 108,497 86,567
Construction 39,416 48,427
Purchase of shop-house 22,134 25,039
Charge card 1,481 1,706
6,892,255 6,091,502
- -
(g) Financing and advances analysed by sectors are as follows:
Unaudited Audited
30 September 31 December
2017 2016
RM'000 RM'000
Household 1,792,583 1,881,700
Telecommunication 1,524,405 1,509,239
Real estate, renting and business activities 900,068 846,681
Wholesale & Retail trade 989,776 587,642
Manufacturing 874,663 606,898
Construction 538,183 353,687
Finance intermediation 153,000 264,395
Transportation 33,461 15,067
Agriculture, hunting and related service activities 46,157 1,931
Hotel & restaurant 20,019 20,063
Other business 19,940 2,826
- 1,309
Forestry, logging and related services activities - 64
6,892,255 6,091,502
-
(h) Movements in impaired financing and advances
Unaudited Audited
30 September 31 December
2017 2016
RM'000 RM'000
At 1 January 43,144 31,038 Impaired during the financial period / year 26,185 59,075 Reclassified as non impaired (19,756) (4,332) Recoveries (22,742) (30,811) Write-off (3,301) (11,826)
23,530 43,144
-
0.33% 0.59%
Group and Bank
Group and Bank
Included in amount classified as impaired during the financial period is profit accrued on impaired financing of RM836,599 (2016:
RM1,798,484).
Group and Bank
Fishing, Operation of Fish Hatcheries, Fish Farms
Ratio of net impaired financing and advances to gross
financing and advances less individual impairment
12
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY DOCUMENT
ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
12. FINANCING AND ADVANCES (Continued)
(i) Movements in the allowances for impaired financing and advances
Unaudited Audited
30 September 31 December
2017 2016
RM'000 RM'000
Collective assessment allowance
At 1 January 81,797 87,732
Allowance made during the period / year (Note 18 (b)) 5,032 5,456
Amount recovered during the financial year (4) -
Amount written off (13,711) (11,391)
Closing balance 73,114 81,797
- -
1.06% 1.34%
Individual assessment allowance
At 1 January 7,289 7,461
Allowance made during the financial year (Note 18(a)) 1,077 379
Amount recovered during the financial year (Note 18(a)) (364) (540)
Amount written off (6,909) (11)
Closing balance 1,093 7,289
- -
(j) Impaired financing analysed by geographical distribution are as follows:
Unaudited Audited
30 September 31 December
2017 2016
RM'000 RM'000
Malaysia 23,530 43,144
23,530 43,144
- -
(k) Impaired financing analysed by economic purpose are as follows:
Unaudited Audited
30 September 31 December
2017 2016
RM'000 RM'000
Working capital 10,500 17,281
Personal use 6,160 10,986
Purchase of properties - residential 6,078 9,662
Purchase of shophouse - 3,444
Purchase of transport vehicles 611 1,561
Charge card 181 210
23,530 14,877
- -
(l) Impaired financing analysed by sector are as follows:
Unaudited Audited
30 September 31 December
2017 2016
RM'000 RM'000
Household 13,031 25,663
Manufacturing 10,483 17,449
Other business - 16
Financial Intermediation 16 16
23,530 43,144
-
Group and Bank
Group and Bank
Group and Bank
Group and Bank
As % of total gross financing and advances less
individual impairment allowances
13
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY DOCUMENT
ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
13. DEPOSITS FROM CUSTOMERS
(a) By type of deposit
Unaudited Audited
30 September 31 December
2017 2016
RM'000 RM'000Savings deposits
Qard 202,138 237,798
Demand deposits
Qard 772,376 559,282
Mudarabah 119,035 123,344
Term deposit
Commodity Murabahah 6,009,807 5,176,519
General investment account
Mudarabah 10,460 14,682
Wakalah 31,442 33,531
Other deposits 1,421 13,234
7,146,679 6,158,390
- -
(b) By type of customer
Unaudited Audited
30 September 31 December
2017 2016
RM'000 RM'000
Business enterprises 1,601,181 1,750,109Government and statutory bodies 1,174,524 609,898Individuals 376,132 377,402Others 3,994,842 3,420,981
7,146,679 6,158,390- -
(c) By maturity structure
Unaudited Audited
30 September 31 December
2017 2016
RM'000 RM'000
Due within three months 4,123,796 3,957,463More than three months to one year 2,743,707 2,132,316More than one year to five years 279,176 68,611
7,146,679 6,158,390
- -
14. DEPOSITS AND PLACEMENTS OF BANKS AND OTHER FINANCIAL INSTITUTIONS
Unaudited Audited
30 September 31 December
2017 2016
RM'000 RM'000
Non-Mudharabah Funds
Licensed Islamic banks 808,145 662,425Licensed financial institutions 339,913 458,186
1,148,058 1,120,611- -
Group and Bank
Group and Bank
Group and Bank
Group and Bank
14
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY DOCUMENT
ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
15. INCOME DERIVED FROM INVESTMENT OF DEPOSITORS' FUNDS AND OTHERS
30 September 30 September 30 September 30 September
2017 2016 2017 2016
RM'000 RM'000 RM'000 RM'000
Income derived from investment of:
(i) General investment deposits 124 225 541 850
(ii) Other deposits 107,719 82,643 314,223 253,409
107,843 82,867 314,764 254,258
- - -
(i) Income derived from investment of general investment deposits
30 September 30 September 30 September 30 September
2017 2016 2017 2016
RM'000 RM'000 RM'000 RM'000
Finance income and hibah
Financing and advances 121 219 525 826
Money at call and deposit with
financial institutions 3 6 16 24 Total finance income and hibah 124 225 541 850
- - -
(ii) Income derived from investment of other deposits
30 September 30 September 30 September 30 September
2017 2016 2017 2016
RM'000 RM'000 RM'000 RM'000
Finance income and hibah
Financing and advances 90,779 66,372 263,377 204,511
Securities held-to-maturity 14,702 14,788 43,698 44,096
Money at call and deposit with
financial institutions 2,237 1,483 7,145 4,800
Accretion of discount 1 1 3 3
107,719 82,643 314,223 253,409
- - - -
Period Ended
Group
3rd Quarter Ended Period Ended
Group
Group
Group
Group
3rd Quarter Ended Period Ended
Group
3rd Quarter Ended
15
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY DOCUMENT
ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
15. INCOME DERIVED FROM INVESTMENT OF DEPOSITORS' FUNDS AND OTHERS (Continued)
30 September 30 September 30 September 30 September
2017 2016 2017 2016
RM'000 RM'000 RM'000 RM'000
Income derived from investment of:
(i) General investment deposits 124 225 541 850
(ii) Other deposits 107,719 82,642 314,223 253,408
107,843 82,867 314,764 254,258
0.00 -
(i) Income derived from investment of general investment deposits
30 September 30 September 30 September 30 September
2017 2016 2017 2016
RM'000 RM'000 RM'000 RM'000
Finance income and hibah
Financing and advances 121 219 524 826
Money at call and deposit with
financial institutions 3 6 17 24 Total finance income and hibah 124 225 541 850
- - -
(ii) Income derived from investment of other deposits
30 September 30 September 30 September 30 September
2017 2016 2017 2016
RM'000 RM'000 RM'000 RM'000
Finance income and hibah
Financing and advances 90,779 66,372 263,377 204,511
Securities held-to-maturity 14,702 14,787 43,698 44,095
Money at call and deposit with
financial institutions 2,237 1,482 7,145 4,799
Accretion of discount 1 1 3 3
107,719 82,642 314,223 253,408
- - - -
Bank
Bank Bank
Bank
3rd Quarter Ended Period Ended
3rd Quarter Ended Period Ended
Bank Bank
3rd Quarter Ended Period Ended
16
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY DOCUMENT
ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
- - 16. INCOME DERIVED FROM INVESTMENT OF SHAREHOLDERS' FUNDS
30 September 30 September 30 September 30 September
2017 2016 2017 2016
RM'000 RM'000 RM'000 RM'000
Finance income and hibah
Money at call and deposit
with financial institutions 404 403 1,352 1,215
Total finance income and hibah 404 403 1,352 1,215
Other operating income
- Net gain from foreign exchange translations
- Realised 155 (8,847) 2,729 (3,902)
- Unrealised 2,197 10,938 3,623 10,759
- Rental income 433 1,140 1,591 3,420
- Realised gain on gold 217 441 1,042 1,633
- Unrealised loss on revaluation
of securities held-for-trading - 25 614 31
- Others 92 85 279 266
Other income
- Service charges 1,169 1,761 3,702 4,962
- Commission received 2,941 2,246 8,323 6,165
7,608 8,192 23,255 24,548- - -
30 September 30 September 30 September 30 September
2017 2016 2017 2016
RM'000 RM'000 RM'000 RM'000
Finance income and hibah
Money at call and deposit
with financial institutions 404 403 1,352 1,215
Total finance income and hibah 404 403 1,352 1,215
Other operating income
- Net gain from foreign exchange translations
- Realised 155 (8,847) 2,729 (3,902)
- Unrealised 2,197 10,938 3,623 10,759
- Rental income 433 1,140 1,591 3,420
- Realised gain on gold 217 441 1,042 1,633
- Unrealised loss on revaluation
of securities held-for-trading - 183 614 31
- Others 94 85 280 266
Other income
- Service charges 1,087 1,565 3,500 4,767
- Commission received 2,941 2,246 8,323 6,165
7,528 8,154 23,054 24,354- - -
Group
3rd Quarter Ended
Bank
Period Ended
Group
Bank
3rd Quarter Ended Period Ended
17
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY DOCUMENT
ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
17. ALLOWANCE FOR IMPAIRMENT ON FINANCING
30 September 30 September 30 September 30 September
2017 2016 2017 2016
RM'000 RM'000 RM'000 RM'000
Impaired financing and advances:
(a) Individual assessment allowance
- provided during the financial period (23) 36 1,077 862
- written back - (26) (364) (551)
(b) Collective assessment allowance
- (write-back) / provided during financial period 3,079 3,074 5,032 6,830
3,056 3,084 5,745 7,141
(c) Bad debts on financing
- recovered (1,917) (1,901) (6,045) (5,777)
- written off 483 819 1,353 1,303
1,622 2,002 1,053 2,667
- -
18. INCOME ATTRIBUTABLE TO DEPOSITORS
30 September 30 September 30 September 30 September
2017 2016 2017 2016
RM'000 RM'000 RM'000 RM'000
Deposits from customers
- Non-Mudharabah 38,144 25,589 117,872 86,818
- Mudharabah 420 463 1,284 1,500
- Wakalah 249 275 751 3,255
38,813 26,327 119,907 91,573
Deposits and placements of banks
and other financial institutions
- Non-Mudharabah 27,838 24,115 73,591 62,041
66,651 50,442 193,498 153,614
- - -
19. SUBSEQUENT EVENTS
20. CHANGES IN THE COMPOSITION OF THE GROUP
There were no changes in the composition of the Group since the last audited financial statements as at 31 December 2016.
Group and Bank
3rd Quarter Ended
Group and Bank
3rd Quarter Ended Period Ended
Group and Bank
Group and Bank
Period Ended
There were no material events subsequent to the end of the reporting date that require disclosure or adjustments to the unaudited interim
financial statements.
18
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY DOCUMENT
ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
21. COMMITMENTS AND CONTINGENCIES
Credit Risk Credit Risk
Principal equivalent weighted Principal equivalent weighted
amount amount amount amount amount amount
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
Group and Bank
Transaction-related contingent items 235,965 117,983 93,362 321,721 160,861 124,576
Trade-related contingencies 2,369 474 474 16,291 3,258 3,032
Irrevocable commitments to extend credit:
- Maturity not exceeding one year 3,155,655 631,131 597,476 2,541,065 508,213 508,213
- Maturity exceeding one year 272,771 133,819 131,747 299,675 147,164 144,852
Foreign exchange-related contracts - - - 17,940 - -
3,666,760 883,407 823,059 3,196,692 819,496 780,673
The commitments and contingencies and the related risk-weighted exposures of the Group as are as follows:
The Credit Equivalent and Risk Weighted for the Bank are computed in accordance with BNM's Capital Adequacy Framework for Islamic
Banks (CAFIB): Standardised Approach for Credit and Market Risk, and Basic Indicator Approach for Operational Risk (Basel II) respectively.
In the normal course of business, the Group made various commitments and incurred certain contingent liabilities with legal recourse to their
customers. No material losses are anticipated as a result of these transactions.
Unaudited Audited30 September 2017 31 December 2016
19
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY DOCUMENT
ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
22. FINANCIAL RISK MANAGEMENT
Market Risk - Profit Rate Risk
Group Average
Up to 1 > 1 -3 > 3 - 12 1 - 5 Non-profit Trading effective
Unaudited month months months years > 5 years sensitive book Total profit rate
30 September 2017 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 %
Assets
Cash and short term funds 245,864 - - - - 87,798 - 333,662 0.31
Hedging financial instruments - - - - - - - - -
- - 394,022 - - 3,121 - 397,143 2.18
Securities held-for-trading - - - - - - 6,051 6,051 -
Securities held-to-maturity - - 4,000 840,570 600,000 5,589 - 1,450,159 3.98
Financing and advances
- performing 1,651,683 2,344,227 797,788 635,029 1,395,917 44,080 - 6,868,724
- Non performing(1)
- - - - - (50,676) - (50,676)
Other assets(2)
- - - - - 496,626 - 496,626Total assets 1,897,547 2,344,227 1,195,810 1,475,599 1,995,917 586,538 6,051 9,501,689
The Group is exposed to various risks associated with the effects of fluctuations in the prevailing levels of yield/profit rate on its financial position. The rate of return risk is the
potential impact of market factors affecting rates on returns in comparison with the expected rates of return for investment account holders. Yield/profit rate is monitored and
managed by the ALCO to protect the income of its operations. The assets and liabilities at carrying amount are categorised by the earlier of the next contractual repricing dates and
maturity dates as follows:
Non-trading book
Deposit and placement with other
FI / Institutions
5.37
20
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY DOCUMENT
ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
22. FINANCIAL RISK MANAGEMENT (Continued)
Market Risk - Profit Rate Risk (continued)
Group (Continued) Average
Up to 1 > 1 -3 > 3 - 12 1 - 5 Non-profit Trading effective
Unaudited (Continued) month months months years > 5 years sensitive book Total profit rate
30 September 2017 (Continued) RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 %
Liabilities
Deposits from customers 1,282,043 1,764,406 2,725,162 279,176 - 1,095,892 - 7,146,679 2.50
Deposits and placements of banks
and other financial institutions 463,520 625,000 50,000 - - 9,538 - 1,148,058 3.53
Hedging financial instruments - - - - - - - - -
Bills and acceptance payable - - - - - 3,235 - 3,235 -
Other liabilities - - - - - 64,025 - 64,025 -
Subrodinated Sukuk - - 394,022 - - - - 394,022
Total liabilities 1,745,563 2,389,406 3,169,184 279,176 - 1,172,690 - 8,756,019
Shareholders' fund - - - - - 745,670 - 745,670
Total liabilities and
shareholders' fund 1,745,563 2,389,406 3,169,184 279,176 - 1,918,356 - 9,501,689
-
On-balance sheet profit
sensitivity gap 151,984 (45,179) (1,973,374) 1,196,423 1,995,917 (1,331,818) 6,051
Off-balance sheet profit
sensitivity gap - - - - - 3,666,760 -
Total profit
sensitivity gap 151,984 (45,179) (1,973,374) 1,196,423 1,995,917 2,334,942 6,051
Note:(1)
(2)Other assets include property and equipment, deferred tax assets and statutory deposits with Bank Negara Malaysia.
This is arrived at after deducting the collective and individual impairment allowance from the outstanding gross non performing financing.
21
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY DOCUMENT
ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
22. FINANCIAL RISK MANAGEMENT (Continued)
Market Risk - Profit Rate Risk (continued)
Group (Continued) Average
Up to 1 > 1 -3 > 3 - 12 1 - 5 Non-profit Trading effective
Audited month months months years > 5 years sensitive book Total profit rate
31 December 2016 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 %
Assets
Cash and short term funds 25,716 - - - - 94,497 - 120,213 1.02
Hedging financial instruments - - - - - - - - -
- 59,801 239,202 - - 3,974 - 302,977 3.11
Securities held-for-trading - - - - - - 5,701 5,701 -
Securities held-to-maturity - - 4,000 844,570 600,000 20,410 - 1,468,980 3.99
Financing and advances -
- performing 1,571,052 540,884 2,072,909 768,612 1,066,460 28,441 - 6,048,358
- Non performing(1)
- - - - - (45,942) - (45,942)
Other assets(2)
- - - - - 500,897 - 500,897 Total assets 1,596,768 600,685 2,316,111 1,613,182 1,666,460 602,277 5,701 8,401,184
Deposit and placement with other
FI / Institutions
Non-trading book
5.53
22
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY DOCUMENT
ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
22. FINANCIAL RISK MANAGEMENT (Continued)
Market Risk - Profit Rate Risk (continued)
Group (Continued) Average
Up to 1 > 1 -3 > 3 - 12 1 - 5 Non-profit Trading effective
Audited (Continued) month months months years > 5 years sensitive book Total profit rate
31 December 2016 (Continued) RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 %
Liabilities
Deposits from customers 1,263,051 1,915,648 2,118,953 68,611 - 792,127 - 6,158,390 3.28
Deposits and placements of banks
and other financial institutions 430,000 550,000 135,000 - - 5,611 - 1,120,611 3.50
Hedging financial instruments - - - - - - - -
Bills and acceptance payable - - - - - 1,067 - 1,067
Other liabilities - - - - - 82,869 - 82,869
Subrodinated Sukuk - 59,801 239,202 - - - - 299,003
Total liabilities 1,693,051 2,525,449 2,493,155 68,611 - 881,674 - 7,661,940
Shareholders' fund - - - - - 739,244 - 739,244
Total liabilities and
shareholders' fund 1,693,051 2,525,449 2,493,155 68,611 - 1,620,918 - 8,401,184
On-balance sheet profit
sensitivity gap (96,283) (1,924,764) (177,044) 1,544,571 1,666,460 (1,018,641) 5,701
Off-balance sheet profit
sensitivity gap - - - - - 3,196,692 -
Total profit
sensitivity gap (96,283) (1,924,764) (177,044) 1,544,571 1,666,460 2,178,051 5,701
Note:(1)
(2)Other assets include property and equipment, deferred tax assets and statutory deposits with Bank Negara Malaysia.
This is arrived at after deducting the collective and individual impairment allowance from the outstanding gross non performing financing.
23
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY DOCUMENT
ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
22. FINANCIAL RISK MANAGEMENT (Continued)FINANCIAL RISK MANAGEMENT (Continued)
Market Risk - Profit Rate Risk (continued)
Bank Average
Up to 1 > 1 -3 > 3 - 12 1 - 5 Non-profit Trading effective
Unaudited month months months years > 5 years sensitive book Total profit rate
30 September 2017 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 %
Assets
Cash and short term funds 245,864 - - - - 87,798 - 333,662 0.31
Hedging financial instruments - - - - - - - -
- - 394,022 - - 3,121 - 397,143 2.18
Securities held-for-trading - - - - - - 6,051 6,051
Securities held-to-maturity - - 4,000 840,570 600,000 5,589 - 1,450,159 3.98
Financing and advances
- performing 1,651,683 2,344,227 797,788 635,029 1,395,917 44,080 - 6,868,724
- Non performing(1)
- - - - - (50,676) - (50,676)
Other assets(2)
- - - - - 496,576 - 496,576 Total assets 1,897,547 2,344,227 1,195,810 1,475,599 1,995,917 586,488 6,051 9,501,639
-
Non-trading book
Deposit and placement with other
FI / Institutions
5.37
24
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY DOCUMENT
ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
22. FINANCIAL RISK MANAGEMENT (Continued)FINANCIAL RISK MANAGEMENT (Continued)
Market Risk - Profit Rate Risk (continued)
Bank (Continued) Average
Up to 1 > 1 -3 > 3 - 12 1 - 5 Non-profit Trading effective
Unaudited (Continued) month months months years > 5 years sensitive book Total profit rate
30 September 2017 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 %
Liabilities
Deposits from customers 1,282,043 1,764,406 2,725,162 279,176 - 1,095,892 - 7,146,679 2.50
Deposits and placements of banks
and other financial institutions 463,520 625,000 50,000 - - 9,538 - 1,148,058 3.53
Hedging financial instruments - - - - - - - - -
Bills and acceptance payable - - - - - 3,235 - 3,235 -
Other liabilities - - - - - 64,027 - 64,027 -
Subrodinated Sukuk - - 394,022 - - - - 394,022
Total liabilities 1,745,563 2,389,406 3,169,184 279,176 - 1,172,692 - 8,756,021
Shareholders' fund - - - - - 745,618 - 745,618
Total liabilities and
shareholders' fund 1,745,563 2,389,406 3,169,184 279,176 - 1,918,310 - 9,501,639
On-balance sheet profit
sensitivity gap 151,984 (45,179) (1,973,374) 1,196,423 1,995,917 (1,331,822) 6,051
Off-balance sheet profit
sensitivity gap - - - - - 3,666,760 -
Total profit
sensitivity gap 151,984 (45,179) (1,973,374) 1,196,423 1,995,917 2,334,938 6,051
Note:(1)
(2)Other assets include property and equipment, deferred tax assets and statutory deposits with Bank Negara Malaysia.
This is arrived at after deducting the collective and individual impairment allowance from the outstanding gross non performing financing.
25
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY DOCUMENT
ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
22. FINANCIAL RISK MANAGEMENT (Continued)FINANCIAL RISK MANAGEMENT (Continued)
Market Risk - Profit Rate Risk (continued)
Bank Average
Up to 1 > 1 -3 > 3 - 12 1 - 5 Non-profit Trading effective
Audited month months months years > 5 years sensitive book Total profit rate
31 December 2016 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 %
Assets
Cash and short term funds 25,716 - - - - 94,497 - 120,213 1.02
Hedging financial instruments - - - - - - - - -
- 59,801 239,202 - - 3,974 - 302,977 3.11
Securities held-for-trading - - - - - - 5,701 5,701 -
Securities held-to-maturity - - 4,000 844,570 600,000 20,410 - 1,468,980 3.99
Financing and advances - - - - - - - -
- performing 1,571,052 540,884 2,072,909 768,612 1,066,460 28,441 - 6,048,358
- Non performing(1)
- - - - - (45,942) - (45,942)
Other assets(2)
- - - - - 500,844 - 500,844 Total assets 1,596,768 600,685 2,316,111 1,613,182 1,666,460 602,224 5,701 8,401,131
Non-trading book
Deposit and placement with other
FI / Institutions
5.53
26
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY DOCUMENT
ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
22. FINANCIAL RISK MANAGEMENT (Continued)FINANCIAL RISK MANAGEMENT (Continued)
Market Risk - Profit Rate Risk (continued)
Bank (Continued) Average
Up to 1 > 1 -3 > 3 - 12 1 - 5 Non-profit Trading effective
Audited (Continued) month months months years > 5 years sensitive book Total profit rate
31 December 2016 (Continued) RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 %
Liabilities
Deposits from customers 1,263,051 1,915,648 2,118,953 68,611 - 792,127 - 6,158,390 3.28
Deposits and placements of banks
and other financial institutions 430,000 550,000 135,000 - - 5,611 - 1,120,611 3.50
Hedging financial instruments - - - - - - - -
Bills and acceptance payable - - - - - 1,067 - 1,067
Other liabilities - - - - - 82,869 - 82,869
Subrodinated Sukuk - 59,801 239,202 - - - - 299,003
Total liabilities 1,693,051 2,525,449 2,493,155 68,611 - 881,674 - 7,661,940
Shareholders' fund - - - - - 739,191 - 739,191
Total liabilities and
shareholders' fund 1,693,051 2,525,449 2,493,155 68,611 - 1,620,865 - 8,401,131
On-balance sheet profit
sensitivity gap (96,283) (1,924,764) (177,044) 1,544,571 1,666,460 (1,018,641) 5,701
Off-balance sheet profit -
sensitivity gap - - - - - 3,196,692 -
Total profit
sensitivity gap (96,283) (1,924,764) (177,044) 1,544,571 1,666,460 2,178,051 5,701
Note:(1)
(2)Other assets include property and equipment, deferred tax assets and statutory deposits with Bank Negara Malaysia.
This is arrived at after deducting the collective and individual impairment allowance from the outstanding gross non performing financing.
27
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
23. CAPITAL ADEQUACY
a)
Unaudited Audited Unaudited Audited
30 September 31 December 30 September 31 December
2017 2016 2017 2016
RM'000 RM'000 RM'000 RM'000
CET 1/ Tier I capital
Paid-up share capital 1,000,000 1,000,000 1,000,000 1,000,000
Accumulated losses (254,330) (260,721) (254,382) (260,774)
745,670 739,279 745,618 739,226
Less: Deferred tax (62,087) (62,087) (62,087) (62,087)
Total Tier-I capital 683,583 677,192 683,531 677,139
Tier-II capital
63,345 69,384 63,345 69,384
394,022 299,003 394,022 299,003
Total Tier-II capital 457,367 368,387 457,367 368,387
Capital base 1,140,950 1,045,579 1,140,898 1,045,526
CET 1 / Core capital ratio 9.716% 11.246% 9.715% 11.245%
Risk-weighted capital ratio 16.217% 17.364% 16.216% 17.363%
(b) The breakdown of risk-weighted assets ("RWA") by each major risk category is as follows:
Unaudited Audited Unaudited Audited
30 September 31 December 30 September 31 December
2017 2016 2017 2016
RM'000 RM'000 RM'000 RM'000
Credit risk 6,576,560 5,569,081 6,576,560 5,569,081
Market risk 123,548 122,785 123,548 122,785
Operational risk 335,492 329,719 335,492 329,719
7,035,600 6,021,585 7,035,600 6,021,585
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY
DOCUMENT ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA
Subordinated Sukuk
Group
The capital adequacy ratios of the Group and the Bank below are disclosed pursuant to the requirements of Bank Negara
Malaysia's Risk Weighted Capital Adequacy Framework (Basel II) - Disclosure Requirements (Pillar 3):
Bank
Bank
Group
Collective impairment for impairment loss on non-impaired
financing
28
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY
DOCUMENT ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA
23. CAPITAL ADEQUACY (Continued)
(b) The breakdown of risk-weighted assets ("RWA") by each major risk category is as follows (Continued):
Risk
Gross Net weighted Capital
exposures exposures assets requirements
Exposure Class RM'000 RM'000 RM'000 RM'000
Credit Risk
On-Balance Sheet Exposures
Sovereigns/Central
Banks 1,692,994 1,692,994 - -
Banks, Development
Financial Institutions
("DFIs") & MDBs 745,142 745,147 155,216 12,417
Corporate 5,148,681 5,051,138 4,510,353 360,828
Regulatory Retail 691,182 690,681 518,011 41,441
Residential Real Estate
(RRE) Financing 1,075,853 1,075,853 501,615 40,129
Other assets 97,950 97,951 67,428 5,394
Defaulted Exposures 12,673 12,358 16,790 1,343
Total for On-Balance
Sheet Exposures 9,464,475 9,366,122 5,769,413 461,552
Off-Balance Sheet Exposures
Off-balance sheet
exposures other than
OTC derivatives or
credit derivatives 833,857 833,852 807,147 64,572
Total for Off-Balance
Sheet Exposures 833,857 833,852 807,147 64,572
Total On and Off-Balance
Sheet Exposures 10,298,332 10,199,974 6,576,560 526,124
Large Exposures Risk
Requirement - - - -
Long Short
Market Risk position position
Foreign Currency
Risk 123,548 - 123,548 9,884
Operational Risk - - 335,492 26,839
Total RWA and Capital Requirements 7,035,600 562,847
Group and Bank
30 September 2017
29
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY
DOCUMENT ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA
23. CAPITAL ADEQUACY (Continued)
(b)
Risk
Gross Net weighted Capital
exposures exposures assets requirements
Exposure Class RM'000 RM'000 RM'000 RM'000
Credit Risk
On-Balance Sheet Exposures
Sovereigns/Central
Banks 1,689,777 1,689,777 - -
Banks, Development
Financial Institutions
("DFIs") & MDBs 377,471 377,471 75,494 6,040
Corporate 4,208,664 4,182,474 3,560,104 284,808
Regulatory Retail 710,996 710,191 532,643 42,611
Residential Real Estate - - - -
(RRE) Financing 1,132,214 1,132,214 538,693 43,095
Other assets 84,473 84,474 50,798 4,064
Defaulted Exposures 21,873 21,873 30,676 2,454
Total for On-Balance
Sheet Exposures 8,225,468 8,198,474 4,788,408 383,072
Off-Balance Sheet Exposures
Off-balance sheet
exposures other than
OTC derivatives or
credit derivatives 819,633 819,496 780,673 62,454
Total for Off-Balance
Sheet Exposures 819,633 819,496 780,673 62,454
Total On and Off-Balance
Sheet Exposures 9,045,101 9,017,970 5,569,081 445,526
Large Exposures Risk
Requirement - - - -
Long Short
Market Risk position position
Foreign Currency
Risk 122,785 - 122,785 9,823
- - - -
Operational Risk - - 329,719 26,378
Total RWA and Capital Requirements 6,021,585 481,726
31 December 2016
The breakdown of risk-weighted assets ("RWA") by exposures in each major risk category for the current financial year are as
follows: (continued)
Group and Bank
30
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY DOCUMENT
ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
23. CAPITAL ADEQUACY (Continued)
(c) The breakdown of credit risk disclosed by risk-weights (including deducted exposures) are as follows:
Group and Bank
Unaudited
30 September 2017 Total
exposure Total
Sovereigns/ Banks, DFIs Regulatory Residential Equity Other after netting weighted
Risk weights Central Bank & MDBs Corporate Retail Real Estate exposures assets and CRM assets
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
Performing
Exposures
0% 1,692,994 - - - - - 30,522 1,723,516 -
20% - 724,523 199,605 - - - - 924,128 184,826
35% - - - - 390,169 - - 390,169 136,559
50% - 20,624 - - 638,086 - - 658,710 329,355
75% - - 1,524,405 790,924 12,920 - - 2,328,249 1,746,187
100% - - 4,058,160 - 37,209 - 67,428 4,162,797 4,162,797
150% - - - - - - - - -
Total 1,692,994 745,147 5,782,170 790,924 1,078,384 - 97,950 10,187,569 6,559,724
Defaulted
Exposures
35% - - - - - - - - -
50% - - - 227 - - - 227 114
100% - - - - 3,086 - - 3,086 3,086
150% - - 9,092 - - - - 9,092 13,638
Total - - 9,092 227 3,086 - - 12,405 16,838
Total Performing
and Defaulted 1,692,994 745,147 5,791,262 791,151 1,081,470 - 97,950 10,199,974 6,576,561
Exposures after netting and credit risk mitigation ("CRM")
31
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY DOCUMENT
ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
23. CAPITAL ADEQUACY (Continued)
(c) The breakdown of credit risk disclosed by risk-weights (including deducted exposures) are as follows (Continued):
Group and Bank
Audited
31 December 2016 Total
exposure Total risk
Sovereigns/ Banks, DFIs Regulatory Residential Equity Other after netting weighted
Risk weights Central Bank & MDBs Corporate Retail Real Estate exposures assets and CRM assets
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
Performing
Exposures
0% 1,689,777 - - - - - 33,676 1,723,453 -
20% - 378,420 230,419 - - - - 608,839 121,768
35% - - - - 375,980 - - 375,980 131,593
50% - - 121,451 - 690,113 - - 811,564 405,782
75% - - 1,509,239 855,228 23,529 - - 2,387,996 1,790,997
100% - - 2,987,656 - 49,812 - 50,798 3,088,266 3,088,265
150% - - - - - - - - -
Total 1,689,777 378,420 4,848,765 855,228 1,139,434 - 84,474 8,996,098 5,538,405
Defaulted
Exposures
35% - - - - - - - - -
50% - - - - - - - - -
100% - - - - 4,268 - - 4,268 4,268
150% - - 14,964 2,096 545 - - 17,605 26,408
Total - - 14,964 2,096 4,813 - - 21,873 30,676
Total Performing
and Defaulted 1,689,777 378,420 4,863,729 857,324 1,144,247 - 84,474 9,017,971 5,569,081
Exposures after netting and credit risk mitigation ("CRM")
32
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134
(“MFRS 134”) AND POLICY DOCUMENT ON FINANCIAL REPORTING FOR LICENSED ISLAMIC
BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
23. CAPITAL ADEQUACY (Continued)
(d) The breakdown of risk-weighted assets by risk-weights are as follows:
Principal Risk-weighted
RM'000 RM'000
0% 1,723,516 -
20% 924,128 184,826
35% 390,169 136,559
50% 658,937 329,469
75% 2,328,249 1,746,187
100% 4,165,883 4,165,883
150% 9,092 13,638
Risk-weighted assets for credit risk 10,199,974 6,576,561
Large exposure risk-weighted assets for equity holdings -
Risk-weighted assets for market risk 123,547
Risk-weighted assets for operational risk 335,492
Total risk-weighted assets 7,035,600
Principal Risk-weighted
RM'000 RM'000
0% 1,723,453 -
20% 608,839 121,768
35% 375,980 131,593
50% 811,564 405,782
75% 2,387,996 1,790,997
100% 3,092,534 3,092,534
150% 17,605 26,407
Risk-weighted assets for credit risk 9,017,971 5,569,081
Large exposure risk-weighted assets for equity holdings -
Risk-weighted assets for market risk 122,785
Risk-weighted assets for operational risk 329,719
Total risk-weighted assets 6,021,585
Group and Bank
Unaudited
30 September 2017
Audited
31 December 2016
Group and Bank
33
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY DOCUMENT ON
FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
23. CAPITAL ADEQUACY (Continued)
(e) Disclosure on off balance sheet and counterparty credit risk are as follows:
Credit Risk Credit Risk
Principal equivalent weighted Principal equivalent weighted
amount amount amount amount amount amount
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
Direct credit substitutes
Transaction-related contingent items 2,369 474 474 321,721 160,861 124,576
Short term self liquidating trade related contingencies - - - 16,291 3,258 3,032
Foreign exchange related contracts
- One year or less - - 17,940 - -
Other commitments, such as formal standby facilities and
credit lines, with an original maturity of over one year 3,155,655 629,420 596,193 290,763 147,164 144,852
Other commitments, such as formal standby facilities and
credit lines, with an original maturity up to one year 8,555 1,711 1,283 2,541,065 506,431 506,876
Unutilised credit card lines - - - 8,912 1,782 1,337
3,430,795 765,424 729,697 3,196,692 819,496 780,673
30 September 2017 31 December 2016
Group and Bank
Disclosure on Off Balance and Counterparty Credit Risk
Unaudited Audited
34
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
24. SEGMENTAL INFORMATION
Group
Retail Treasury & Corporate
banking money investment
market banking Total
RM'000 RM'000 RM'000 RM'000
Total revenue 93,037 160,895 84,087 338,019
Result
Segment result 57,153 26,288 61,530 144,971
Unallocated corporate
expenses (138,530)
Profit before zakat and taxation 6,441
Zakat and taxation (15)
Net profit for the financial period 6,426
Other information
Segment assets 1,774,310 562,769 5,471,405 7,808,484
Unallocated corporate assets 1,693,205
Total assets 9,501,689
Segment liabilities 7,146,678 1,148,059 - 8,294,737
Unallocated corporate liabilities 461,282
8,756,019
Other segment items
Capital expenditure 4,509 94 (2) 4,601
Unallocated capital expenditure 9,520
14,121
Depreciation and amortisation 2,805 233 277 3,315
Unallocated depreciation
and amortisation 8,949
12,264
Other non-cash
(income)/expenses (3,773) - 4,826 1,053
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY
DOCUMENT ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA
Unaudited
30 September 2017
35
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY
DOCUMENT ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA 24. SEGMENTAL INFORMATION (Continued)
Group (Continued)
Retail Treasury & Corporate
banking money investment
market banking Total
RM'000 RM'000 RM'000 RM'000
Total revenue 171,366 167,051 51,517 389,934
Result
Segment result 90,013 39,089 54,597 183,699
Unallocated corporate
expenses (176,967)
Profit before zakat and taxation 6,732
Zakat and taxation 22
Net profit for the financial year 6,754
Other information
Segment assets 1,856,950 350,066 4,482,119 6,689,135
Unallocated corporate assets 1,712,049
Total assets 8,401,184
Segment liabilities 2,907,290 4,371,712 - 7,279,002
Unallocated corporate liabilities 382,938
Total liabilities 7,661,940
Other segment items
Capital expenditure 1,855 28 141 2,024
Unallocated capital expenditure 18,514
20,538
Depreciation and amortisation 4,599 335 662 5,596
Unallocated depreciation
and amortisation 11,095
16,691
Other non-cash
(income)/expenses 2,994 - (3,592) (598)
Audited
31 December 2016
36
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY
DOCUMENT ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA
24. SEGMENTAL INFORMATION (Continued)
Bank
Retail Treasury & Corporate
banking money investment
market banking Total
RM'000 RM'000 RM'000 RM'000
Total revenue 92,836 160,895 84,087 337,818
Result
Segment result 56,952 26,288 61,530 144,770
Unallocated corporate
expenses (138,343)
Profit before zakat and taxation 6,427
Zakat and taxation -
Net profit for the financial period 6,427
Other information
Segment assets 1,774,309 562,769 5,471,404 7,808,482
Unallocated corporate assets 1,693,157
Total assets 9,501,639
Segment liabilities 7,146,679 1,148,059 - 8,294,738
Unallocated corporate liabilities 461,283
Total liabilities 8,756,021
Other segment items
Capital expenditure 4,509 94 (2) 4,601
Unallocated capital expenditure 9,520
14,121
Depreciation and amortisation 2,805 233 277 3,315
Unallocated depreciation
and amortisation 8,949
12,264
Other non-cash
(income)/expenses (3,773) - 4,826 1,053
Unaudited
30 September 2017
37
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY
DOCUMENT ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA
24. SEGMENTAL INFORMATION (Continued)
Bank (Continued)
Retail Treasury & Corporate
banking money investment
market banking Total
RM'000 RM'000 RM'000 RM'000
Total revenue 171,118 167,051 51,518 389,687
Result
Segment result 89,765 39,087 54,598 183,450
Unallocated corporate
expenses (176,785)
Profit before zakat and taxation 6,665
Zakat and taxation 36
Net profit for the financial year 6,701
Other information
Segment assets 1,856,950 350,066 4,482,120 6,689,136
Unallocated corporate assets 1,711,995
Total assets 8,401,131
Segment liabilities 2,907,290 4,371,712 - 7,279,002
Unallocated corporate liabilities 382,938
Total liabilities 7,661,940
Other segment items
Capital expenditure 1,855 28 141 2,024
Unallocated capital expenditure 18,514
20,538
Depreciation and amortisation 4,599 335 662 5,596
Unallocated depreciation
and amortisation 11,095
16,691
Other non-cash
(income)/expenses 2,994 - (3,592) (598)
Audited
31 December 2016
38
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.
(Incorporated in Malaysia)
Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY
DOCUMENT ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA
25.
26. PROSPECTS FOR 2017
The Banking sector outlook is expected to remain challenging, reflected by the tougher operating environment and higher risk.
Credit growth is expected to slowdown with household debt risen strongly which would lead to an asset quality problem and a
rise in unemployment and interest rate.
Nevertheless the Bank is geared to face the challengers and to grow the business selectively and continue to strengthen its
governence.
For the financial period ended 30 September 2017, the Group and Bank recorded a pre tax profit of RM6.4 million as compared
to a pre tax loss of RM2.2 million in the preceding year’s corresponding period.
REVIEW OF PERFORMANCE FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2017 AGAINST THE
CORRESPONDING FINANCIAL QUARTER OF THE PRECEDING YEAR
39